Upgrades to MARKET PERFORM. Following our upward revision in FY17-18E core earnings, we upgrade KSL to MARKET PERFORM with an unchanged Target Price of RM1.30 with discount of 82% on its RNAV of RM7.07. Our TP implies FY18E FD Core PER of 6.0x, still within its small-mid-cap peers’ Fwd. PER of 5.2-7.3x.
---->>Target Price of RM1.30 with discount of 82% on its RNAV of RM7.07.
##Why Kenanga give a bankruptcy price target for KSL..... ###What is the logic to give discount of 82% on its RNAV of RM7.07... ####A property company with low gearing should be given higher valuation
After years of empty promise, KSL Mall 2 in Klang finally started doing piling since the beginning of this year. It is however a doubt if this mall can do well.
in fact ksl balance sheet is very strong. as at Q1 2017, collect cash from debtors 226.59mil (AR reduce from 501.67mil to 275.08mil), cash increased from 42.91mil to 230.57mil and borrowings reduce from 159.21 mil to 79.55mil.
So long as KSL's management don't do anything for the shareholders, the price won't move. Management had misled the shareholders on its "unbilled" sales in 2014 and reneged on its non-binding promise to declared 40% of its operating profits as dividends also made in 2014. That is why the share price is greatly depressed. Institutional shareholders like Tabung Haji should arm-twist KSL's management to make good on its promise and compensate for its misleading "unbilled" housing sales also in 2014.
many counters performing, but not paying dividend... some dividend paying counters also not performing well... there are other factors, not the only factor..
All of you really don understand why the share price not moving up even though the fin result is very good...It is bcos Lembaga Tabung Haji intentionally press it down unmovable at 1.20 for them to acquire at cheap n low price...Share price will remain at range of 1.20 so as long as LTH is still accumulating...I guess LTH will buy up to 10% of stake in KSL...Price won't move in the medium term as LTH is controlling n pressing down the price so that they can buy at low n cheap price...
Once the KSL Mall 2 completed after 2 years and company resume dividend payout, I think the dividend rate of the current price can achieve 10%. That's why LTH want to acquire the share more and more for continuous income....
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
lcng123
1,126 posts
Posted by lcng123 > 2017-05-30 20:20 | Report Abuse
cash increased to 230.6mil (previously 42.6mil) and borrowings decreased to 80mil (previously 158.8mil). finance cost also getting down.